Assignment - Cash Flow Estimation and Risk Analysis Complete the following table and compute the incremental cash flows associated with the replacement of the old equipment with the new equipment. Initial Year 0 -$500,000 Year 1 Year 2 Year 3 Year 4 Year 5 Year Investment EBIT - Taxes -A Depreciation X T $25,000 + Salvage -$30,000 value $125,000 - Tax on salvage $12,500 - NOWC + Recapture of NOWC Total free cash flow The net present value (NPV) of this replacement project is: $1,462,007 $953,483 $1,271,310 $1,080,614